UK MVNO Tesco Mobile has launched an application allowing customers to get money off their monthly bill in exchange for viewing ads.
Tesco Mobile Xtras is an Android app which gives users a £3 monthly discount if they watch targeted advertisements which intermittently pop up as the phone is unlocked. Mobile advertising platform Unlockd partnered with Tesco Mobile for the project, and advertisers like British Airways, McDonalds and Doritos are signed up as launch partners for the service.
As telcos, and more specifically MVNOs, continue to seek new revenue streams; Tesco Mobile Xtras looks like it has the potential to deliver wins all round. The mobile operator begins generating revenues from advertising – an increasingly difficult area to exploit; the customer gets a discounted monthly bill; and advertisers reach a new audience which has specifically opted-in to receive marketing messaging.
“At Tesco Mobile we’re committed to offering customers great value, simplicity and choice with exceptional rewards,” said Anthony Vollmer, CEO of Tesco Mobile. “Tesco Mobile Xtras, powered by Unlockd’s unique platform, provides our customers with even more choice and value. The opportunity for our customers to save money on their phone bill in exchange for learning about products and services relevant to them is a first in the UK market and we’re excited to exclusively offer this value to our customers,”
Billing discounts in exchange for adverts also looks like another differentiation strategy in a fiercely competitive MVNO market. Most MVNOs seek to bring some form of unique offer to market as an incentive for consumers to move away from the incumbent MNOs. Inclusive international calling, charitable donations for use, discounted data bundles, refer-a-friend discounts and many more strategies all figure as just some of the niche product offerings for specialist MVNOs like Lebara, Tesco, Giff Gaff et al.
With Amazon and Google launching smart home initiatives, have the telcos missed out on their chance to cash in on this market?
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